We all know the problems in XDX with reductions and pending job transfers to Raleigh, and all the issues with the transfer of jobs to HCL in GIS/XBS.
There is what seems to be a bubble of hope in Webster engineering. There is a lot of work, a number of job openings, and work that appears to have a sustainable path for at least a few years. There have been no measurable reductions in many years, and I don't believe there will be for at least a couple more.
Of course the lack of pay raises and this questionable employee incentive plan "bonus" don't help morale, and our benefit cost for things like health insurance go up every year, resulting in a net decrease in cash flow. With everything happening in XDX/GIS/XBS it does make people everwhere skittish about the future, even if they are safe for the next few years.
For anybody in engineering I wouldn't rush out to find a new job as the sky isn't falling, at least not in the short term. If you are unhappy with pay and benefits, take your time to find a perfect job instead of jumping ship at the first opportunity you get.
All bets are off though if there is some sort of merger or buyout from HP. I don't know if the recent HP layoff announcement is making way for a buyout, or if HP is just doing what Xerox has been doing.
No matter where you are, good luck. Take care of yourself first, as Xerox won't. But don't rush to grab the first position you find, unless you truly are at risk or hate your job.